Taiwan on Monday reaffirmed its wish to strike a wide-ranging economic pact with China amid warming ties between the cross-Strait rivals.

Relations between the island and mainland China have been strained since the the end of a civil war in 1949, when they began being governed separately.

But relations have improved dramatically since Ma Ying-jeou of the Kuomintang party took office last May.

"Under the framework of the World Trade Organisation, the government would seek to sign with other countries, including China, free trade agreements or CECA (comprehensive economic cooperation agreements)," said Liu Te-shun, a spokesman for the Mainland Affairs Council, the island's top China policy decision-making body.

Despite improved relations, the sovereignty dispute remains a major barrier to such agreements.

"When the government negotiates with China on related issues, equity and Taiwan's dignity will be ensured," the spokesman said.

The government would push for the signing of such pacts "step by step when the time is ripe and consensus arrived", he said.

The two sides in December launched historic direct daily flights, postal and shipping services, in a move expected to boost trade ties.

But Taiwan's pro-independence opposition Democratic Progressive Party has strongly opposed a wide-ranging economic pact which they claim would demote Taipei to the status of local government in any rapprochement talks.

It is not immediately clear if CECA would be on the agenda when envoys from Taipei are expected to travel to China later this year for the third round of talks.

Taiwanese authorities have made it clear that an agreement on financial cooperation would be discussed during the negotiations.

The Taipei-based Commercial Times said Taipei has looked to forge CECA with Beijing, a pact similar to one which Hong Kong has signed with China.

It said fears of being marginalised and China's huge market had prompted Taipei to speed up talks with Beijing on CECA.

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